So you want to find out how you can save a little extra coin every month? Well, you've come to the right place.

However, before I share with you some hidden gems, what exactly does the dreaded b-word "Budget" mean?

A budget is, in simple terms, the estimation of income and expenses over a given period of time - a month, a year or 5 years etc.

It gives you the ability to visualise your money in vs money out, which enables you to cut costs where not needed and achieve your financial goals quicker.

Budgets are a perfect starting point to understanding your finances and where your money actually goes. So it is a learning process, let me tell you.

And seeing as we are halfway through the year there is no better time than the present to get your finances in order.

So here are the best ways you can budget:

1. Track your spending

Don't be afraid to look at your bank account statements. When you are able to calculate your income and see what your expenses are every month, you'll be able to see where you can cut back. You can manually track your spending with a pen and paper but that can be a bit tedious. Online Banking apps such as Monzo, Revolut, Barclays have budget trackers and budget templates like ours (Pennies to Pounds) are great places to start.

2. Separate Accounts

Create separate accounts to better manage your money. Having a main account for your income and bills, a spending account for your food shop and transport and savings account for holidays or "fun" money (as I like to call it) gives a clearer idea of where exactly your money is going. It's a great way of spreading the cost of those once in a year holidays or gift purchases. However, be mindful to make sure you stay in credit and don't get charged extra fees.

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3. Automate your Savings, Investments and Bills.

I know what you are thinking why would I want all my bills to come out on the same day, don't I need some breathing space?! Now hear me out setting up your direct debits, subscriptions and standing orders to leave your account on the same date does help with staying on track. Doing this helps easily manage your money, avoid late payments and you'll know what you have leftover until the next payday.

4. Set small, easy goals.

Some financial goals take a long time to reach, so I set small winning goals to keep seeing victories. This was initially hard to do when I was first trying to make a budget. I thought I don't deserve a treat until all my debt is paid off & my savings goals are reached. However in order to make habits stick you have to make them rewarding. Therefore if I'd hit my savings target I'd treat myself in next month's budget to something small like a clothing item or a fancy dinner.

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